As Qualcomm reportedly eyes a potential acquisition of Intel, the chipmaker is once again making headlines for its upcoming round of layoffs.

According to TechCrunch, Qualcomm will cut 226 jobs in San Diego later this year, as revealed by a California WARN notice. The layoffs, set to take effect the week of November 12, will impact 16 facilities across the city, including its headquarters. It remains unclear which specific divisions will be affected.

The latest job cuts come less than a year after Qualcomm reduced its workforce by over 1,250 employees, despite reporting $35.8 billion in annual revenue in 2023. These layoffs reflect the company’s ongoing efforts to realign its resources amid a strategic shift, focusing on maximizing opportunities in diversified markets.

According to Wccftech, Qualcomm has made notable progress in the laptop market, with its ARM-based Snapdragon X Elite SoCs gaining popularity among manufacturers. CEO Cristiano Amon has revealed that the company is developing more “affordable” laptop models, with prices potentially starting at $700, in an effort to capture a larger market share.

Beyond Qualcomm’s focus on AI-powered PCs this year, the spotlight has shifted to reports that the company has approached Intel Corp. to explore a potential acquisition of the struggling chipmaker. According to sources cited by Bloomberg, this move could result in one of the largest mergers and acquisitions in tech history.

(Photo credit: Qualcomm)

Taiwan’s Commercial Times, citing industry sources, reports that Samsung’s memory and smartphone divisions are considering outsourcing orders to Taiwanese firms, including TSMC and MediaTek.

Competition in the global semiconductor industry remains fierce. In the foundry sector, TrendForce data shows TSMC retained its top spot in Q2, with quarterly revenue of $20.82 billion and a 62.3% market share. Samsung, ranked second, saw its quarterly revenue grow 14.2% to $3.83 billion, with an 11.5% market share.

The Commercial Times reports that Samsung’s major business lines have recently underperformed expectations, with its foundry and memory divisions facing stiff competition from TSMC and SK Hynix. Its smartphone business has also been plagued by the “green line issue.” To reverse the tide, Samsung is looking to collaborate with Taiwanese manufacturers.

According to Commercial Times, due to yield issues with the Exynos 2500, it remains unclear whether the chip will power Samsung’s smartphones. In addition to its partnership with Qualcomm, Samsung is reportedly in talks with MediaTek to use its Dimensity chips for next year’s flagship S-series phones as a second source.

Benefiting from this shift, Novatek is reportedly well-positioned to gain orders from Samsung, thanks to its competitive pricing. Novatek, which already supplies Apple with iPhone OLED DDIC chips, has proven its technical capabilities to major global brands and could become a cost-saving option for Samsung.

Meanwhile, following Micron’s establishment of a DRAM facility in Taiwan, SK Hynix has also expressed interest in deepening its collaboration with TSMC. Samsung’s memory business president, Jung Bae Lee, has signaled a willingness to explore future partnerships with TSMC. Industry insiders, cited by Commercial Times, note that if AI chips use ASIC paired with HBM, the base die will require advanced manufacturing, making TSMC the top choice for memory firms.

(Photo credit: Samsung)

After Intel settled down plans for restructuring last week, revealing schemes to transform its foundry business into an independent unit with its own board, some potential buyers have been reportedly emerged. After Qulacomm’s rumored proposal of a friendly takeover, latest reports by Bloomberg and Reuters note that U.S.-based asset management company Apollo has recently expressed interest in making an equity-like investment worth up to USD 5 billion in Intel.

However, another U.S. chip giant Broadcom, which had earlier been exploring the possibility of pursuing such a deal, is said not actively considering an offer for Intel at the moment, Bloomberg suggests.

Citing sources familiar with the matter, Bloomberg notes that advisers are still presenting ideas to Broadcom. However, a spokesperson for Broadcom declined to comment.

It is worth noting that in 2018, Broadcom’s planned acquisition of Qualcomm was blocked by the U.S. government due to national security concerns. A potential deal between Broadcom and Intel would likely encounter similar regulatory hurdles.

On the other hand, U.S.-based asset management firm Apollo is said to shown interest in making an equity-like investment of several billion dollars in Intel, while the struggling giant is currently considering Apollo’s proposal, according to Bloomberg and Reuters.

The discussions, though, are still in the early stages and no agreement has been reached, the reports indicate.

This is not the first time Apollo has shown its interest in Intel. Earlier in June, the buyout firm and Intel announced a definitive agreement under which Apollo-managed funds and affiliates will lead an investment of USD 11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34.

According to Apollo’s press release, located in Leixlip, Ireland, Fab 34 is Intel’s leading-edge high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested USD 18.4 billion in Fab 34.

Read more

• [News] Qualcomm Rumored to Consider Acquiring Parts of Intel’s Chip Design Business, with a Focus on PC Segment
• [News] Qualcomm’s Potential Takeover of Intel Might Have Minimal Impact on TSMC, But Not MediaTek

(Photo credit: Intel)

For Intel, last week was like a roller coaster. On Monday, the company settled down plans for restructuring after the board meeting. On Friday, however, according to reports by The Wall Street Journal and Bloomberg, it turns out that Qualcomm has reportedly reached out to Intel regarding a potential acquisition offer, which would rank as one of the largest-ever technology mergers if the deal were to take place.

Should Qualcomm take over Intel, the mega deal may have limited impact on TSMC, the world’s largest foundry. However, Taiwanese smartphone chip giant MediaTek would be more heavily impacted, according to Taiwanese media the Economic Daily News and Commercial Times.

Citing domestic and foreign institutional investors, the Economic Daily News notes that regarding that the Broadcom-Qualcomm saga came to an abrupt end in 2018, the likelihood of the Qualcomm-Intel deal to realize might be low. However, if the acquisition does go through, it could create certain impact on Taiwanese manufacturers.

Citing remarks from Hong Kong-based and foreign semiconductor analysts, the report by the Economic Daily News points out that Intel’s weakness in its foundry unit would be its fatal flaw. With Intel’s yield rates and performance in the advanced nodes lagging behind TSMC, even if Qualcomm successfully acquires Intel, it is expected that Qualcomm would not reclaim the orders currently outsourced to TSMC, indicating the impact to the Taiwan-based foundry giant would be minimal.

Furthermore, the report suggests that from Qualcomm’s perspective, the more logical scenario would be to acquire only Intel’s chip design business. However, from Intel’s standpoint, they would prefer to sell the entire company as a package. Thus, the analysts cited by the report project that Qualcomm is more likely to spin off Intel’s chip manufacturing business and sell it to a U.S. private equity firm after the acquisition.

Actually, in early September, a report by Reuters suggests that Qualcomm, known for its Snapdragon processors used in smartphones, had investigated the possibility of acquiring parts of Intel’s design business to enhance its product portfolio, and was particularly interested in Intel’s PC business.

On the other hand, the story may be different for Taiwanese chip makers. A report by the Commercial Times notes that the acquisition could create pressure on MediaTek, which is Qualcomm’s main rival, as it may face even fiercer competition in sectors like AI PCs and automotive platforms, of which the Taiwanese smartphone chip giant is expected to launch new products next year.

In addition, the takeover would also have negative impact on AMD’s supply chain in Taiwan, including companies like ASMedia, which specializes in high-speed Switch IC, USB, PCIe and SATA controllers, Commercial Times indicates.

It is worth noting that the potential deal would face significant challenges, particularly with antitrust and national security concerns, a report by CNBC notes. For instance, Intel’s recent attempt to acquire Tower Semiconductor and Qualcomm’s bid for NXP Semiconductor were both blocked by Chinese authorities, the report says.

Read more

• [News] Qualcomm Rumored to Consider Acquiring Parts of Intel’s Chip Design Business, with a Focus on PC Segment
• [News] Intel to Turn Foundry Unit into Subsidiary, with Projects in Germany and Poland Delayed for 2 Years

(Photo credit: Qualcomm)

As the U.S. and its allies continue to impose technology restrictions on China’s semiconductor sector, Beijing has accelerated its efforts to develop homegrown alternatives. Chinese firms are aggressively pursuing advanced AI chip development, aiming to rival Nvidia, the global leader in AI semiconductors. A recent CNBC report highlighted seven Chinese companies to watch, including Huawei and Alibaba.

Huawei, the first of Nvidia’s Chinese challengers, is gaining attention with its new Ascend 910C AI chip, which is expected to compete with Nvidia’s H100.

Alibaba follows closely behind. After acquiring C-Sky Microsystems in 2018, the company integrated it with its in-house chip division to form T-Head. In 2019, T-Head launched its first AI inference chip, the Hanguang 800, which has since been deployed at scale in Alibaba’s hyperscale data centers.

Baidu ranks third with its self-developed AI chip, Kunlun. The chip has matured significantly, and in June, Baidu received a strategic investment from Beijing’s AI Industry Investment Fund, marking the first time a state-owned entity has invested in an AI chip firm, boosting Baidu’s growth prospects.

Biren Technology, in fourth, focuses on GPUs like Nvidia, with a software platform to build applications on top of its hardware. Biren’s Bili series of chips are designed for AI training in data centers. Last week, Biren registered for IPO guidance with the Shanghai Securities Regulatory Bureau, marking the start of its public listing journey.

Cambricon Technologies, ranked fifth, designs a wide range of semiconductors, from chips that train AI models to those running AI applications on devices. Known as China’s first AI chip stock, Cambricon has faced setbacks since being blacklisted by the U.S. in late 2022, with reports of large-scale layoffs last year.

Moore Threads, founded in 2020, is developing GPUs for training large AI models. Its data center product, MTT KUAE, integrates GPUs and is aimed at competing with Nvidia.

Enflame Technology, the seventh company on the list, positions itself as a domestic alternative to Nvidia, focusing on AI training chips for data centers. Enflame began IPO guidance on August 26, and is expected to list on the STAR Market alongside Biren either by the end of this year or early next year.

(Photo credit: Huawei)